A BREWERY takeover remains on the table despite delays in a housing application which would ensure the deal goes ahead.

Castle Eden Brewery, in east Durham, which has ceased production, plans to buy near neighbour Cameron's at Hartlepool from parent company Wolverhampton and Dudley Breweries.

Production of Castle Eden's popular ales would then switch permanently to the Lion Brewery in Hartlepool, saving the jobs of the most of the 100-strong Cameron's workforce.

But the deal depends on Persimmon Homes being granted planning approval to develop 70-luxury houses and ten flats on the 14.6-acre site of the 175-year-old brewery at Castle Eden.

Cash from the sale of the brewery site would fund Castle Eden's purchase of the Lion Brewery.

Easington district councillors granted qualified planning approval last month, subject to several conditions, despite opposition by residents and the parish council in Castle Eden.

But, as development in a conservation area, the council has had to refer the proposals to the Government Office for the North-East for scrutiny.

Castle Eden Brewery has become anxious at the time-lapse, blaming the council for delays preventing the plans being passed on to the Government Office.

It plans to complain to the Local Government Ombudsman over Easington council's handling of the application.

The council, which plans to defend its actions, yesterday confirmed the application was sent to the Government Office on Tuesday, "following receipt and consideration of all the outstanding information requested".

Castle Eden Brewery is now eagerly awaiting a swift response from the office.

A brewery spokesman said last night: "The Government Office said they will process the plans in three weeks and if there are no major objections it should go quite smoothly.

"But if they are referred to the Secretary of State, that would become a major issue.

"The whole deal should have gone ahead in September, so the brewery is not happy it has taken this long.

"Delays like this have cost a lot of money. We are running two centres rather than one, it's obviously more expensive."

But the spokesman added that "regardless" of the outcome of the planning bid, it would complain to the Local Government Ombudsman.